Joe Kinnear was today confirmed as Luton Town's director of football exactly seven days after it was announced that he was leaving Oxford United for health and family reasons.

He has taken up the position with immediate effect, agreeing a 2T-year deal which earns him £200,000 a season, with a bonus of £300,000 if he manages to keep Luton up.

That represents a good deal for the Hatters, because it's estimated they will lose £1.5m if they are relegated to Division 3.

Former Wimbledon manager Kinnear had a similar, although part-time, post at Oxford United and his switch so quickly to their main rivals at the bottom of Division 2 suggests the reasons given for his departure from the Manor were something of a smokescreen.

United chairman Firoz Kassam, whose friendship with Kinnear played a major part in bringing him to the Manor, would say nothing about the Irishman's sudden change of allegiance.

"I have no comment to make," Kassam insisted.

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